Construction & Commercial Property News

South West housing market declines as uncertainty over Brexit grows

Share Article

Written by: Hannah Baker | Posted 17 January 2019 16:47

South West housing market declines as uncertainty over Brexit grows

Growing uncertainty around Brexit, a lack of available homes to buy and issues around affordability contributed to the decline in the South West housing market at the end of 2018, according to new research.

The sale of houses is expected to continue to decline in the region over the next few months, according to the latest survey by The Royal Institution of Chartered Surveyors.

The 12-month outlook is a little more upbeat, according to the report, suggesting that some of the current pessimism could be linked to the lack of clarity around Brexit.

However, new buyer enquiries fell for six months in a row in the South West.

Estate agents are finding there are fewer homes available for sale on the market, with an average of just 45 properties per branch in the South West.

Read more: Brexit vote reduces value of UK companies by 16 per cent, Bristol study finds

The lettings market has also seen a decline in supply every month for the past 12 months.

Simon Rubinsohn, RICS chief economist, said: “It is hardly a surprise with ongoing uncertainty about the path to Brexit dominating the news agenda, that even allowing for the normal patterns around the Christmas holidays, buyer interest in purchasing property in December was subdued.

"This is also very clearly reflected in a worsening trend in near term sales expectations. Looking a little further out, there is some comfort provided by the suggestion that transactions nationally should stabilise as some of the fog lifts, but that moment feels a way off for many respondents to the survey.

“Meanwhile it is hard to see developers stepping up the supply pipeline in this environment.

"Getting to the government’s 300,000 building target was never going to be easy but pushing up to anywhere near this figure will require significantly greater input from other delivery channels including local authorities taking advantage of their new-found freedom.”

Picture credit: PA

Share Article